A DETAILED annual review of the Bord Gáis energy tariff would be undertaken this summer, Minister for Energy and Natural Resources Pat Rabbitte told the Dáil.

He said this would involve an assessment of the Bord Gáis submission on gas prices, which would be made in June or July, followed by a consultation process.

“A decision by the regulator will follow in early September on whether any variation should be applied to the tariff from October 1st next,” he added.

Mr Rabbitte said the largest component of gas prices was the wholesale global cost.

The last increase of 20 per cent in regulated gas prices was in September 2008, Mr Rabbitte said.

“However, wholesale gas prices have been trending significantly upwards in Europe in recent months,” he added.

“This is driven by geopolitical events in the Middle East and north Africa and high demand in Asia, including Japan, in the wake of the nuclear crisis.”

Mr Rabbitte said the regulator and Bord Gáis estimated increases in wholesale prices in October were likely to result in a significant increase in tariffs for Irish customers.

“The extent of the increase has not been quantified as yet, but this should be seen in the context of a cumulative decrease of 27 per cent for consumers since January 2009,” he added.

Sinn Féin spokesman Martin Ferris said he did not believe the application by Bord Gáis for an increase of 20 per cent in gas prices and 10 per cent in electricity prices was justified.

The company, he said, had cited global prices as a mitigating factor, despite making €120 million profit last year.